World Bank announces $4.5B in additional financing for Ukraine

The World Bank Group on Monday announced $4.5 billion in additional financing mobilized for Ukraine under the Public Expenditures for Administrative Capacity Endurance in Ukraine (PEACE) Project.

The project aims to help the government of Ukraine meet the urgent needs created by Russia's ongoing war on the country.

The financing package is a grant provided by the US, the World Bank Group said in a statement.

The aid aims to help the government of Ukraine carry out its administrative and service delivery functions at the national and regional levels, to cover social payments, health care services and pensions, in order to mitigate the social and economic impacts of the war.

"Ukraine needs continued government services, including health, education, and social protection to prevent further deterioration in living conditions and poverty," said World Bank Group President David Malpass in the statement.

The additional financing came on top of the $1.49 billion Investment Project Financing approved in June 2022.

So far, the World Bank has mobilized nearly $13 billion in emergency financing, including commitments and pledges from donors, amid the war. Over $6.3 billion of this has been disbursed as of the end of July.

"There is an enormous need for resources to sustain the daily delivery of essential services, as well as for reconstruction," Arup Banerji, World Bank Regional Country Director for Eastern Europe, said in the statement. "As the focus turns to recovery and reconstruction, it will also be critical to increase attention to reforms, transparency, and governance, as Ukraine prepares for a transition to post-war recovery."